Executive Ethics Board Regular Meeting Minutes

June 11, 2004

A. Preliminary Business

1. Roll Call - The meeting was called to order at 10:05 a.m. Present were Chair Marilee Scarbrough, Vice-Chair Paul Zellinsky, Member Trish Akana, Member James Vaché, and Member Evelyn Yenson. Also in attendance: Executive Director Brian Malarky, Assistant Attorney General Sharon Eckholm, Investigator Sue Jones, Compliance Analyst Mechele Linehan, and Education & Outreach Coordinator Debbie O'Dell.

2. Approval of Agenda – Mr. Malarky proposed adding an agenda item regarding a Proposed Stipulation and Order as agenda item "B". Motion was made, seconded and passed to approve the agenda as modified.

3. Approval of April 9, 2004 Regular Meeting Minutes – Motion made, seconded and passed to approve the April 9, 2004 minutes as written.

4. Approval of May 14, 2004 Regular Meeting Minutes - Member Akana asked that in the last sentence of agenda item C. 3., change "…not to issue the letter as drafted" to "…not to issue a letter". Motion made, seconded and passed to approve the May 14, 2004 minutes with the recommended change.

5. Approval of May 26, 2004 Special Meeting Minutes - Member Akana asked that the minutes reflect the outcome of the Board's action on the Executive Director's draft non-binding staff analysis requested by the Washington state Investment Board (WSIB). Specifically, the Board instructed the Executive Director to not issue the letter and to convey both orally and in writing the three points of the Board's concern: (1) the EEB determined there is insufficient information to extend protection under the Ethics Act to current WSIB staff and to conclude there is not a violation of the Act; (2) if the facts are as stated, the EEB may find a violation under RCW 42.52.020 and .040; and (3) the WSIB has an obligation under RCW 42.52.190 to adopt policies governing approval of investments and establishing criteria to be considered in the approval process. Motion was made, seconded and passed to approve the May 26, 2004 Special meeting minutes with the recommended changes.

B. Proposed Stipulations and Orders

1. EEB Case No. 03-110 (Gilbertson) The proposed stipulation and order resolves the allegation that Keith Gilbertson, an employee for the University of Washington (UW), accepted free transportation for his wife and two minor children to attend the 2003 Washington v. Ohio State football game. Under the proposed agreement, Mr. Gilbertson agrees to pay a civil penalty in the amount of $2,500, which includes investigative costs in the amount of one thousand five hundred dollars $1,500. In addition, Mr. Gilbertson agrees to pay Wayne Gittinger or a third party designated by Mr. Gittinger, the amount of $5,273.90. Note: Member Vaché recused himself from Board discussion and left the room.

Results: After considering the matter in closed session, the Board accepted the proposed stipulation and order.

C. Advisory Opinions

1. Memo Regarding Advisory Opinion 04-03, Potential Conflicts of Interest Involving Public Hospital District Review Board - Mr. Malarky briefed the Board members and provided a preliminary analysis regarding potential conflicts of interest created when the private employers of certain public hospital project review board (Project Review Board) members would like to bid on projects that were approved by the Project Review Board. John VanGorkom, Executive Director to the Health Care Facilities Authority, provided detailed information regarding the Project Review Board process. After discussion, Chair Scarbrough provided direction to Mr. Malarky that he clarifies the facts in the analysis of alternative "A" and include further analysis of the conflict of interest safeguards, beneficial interest, and legislative intent as to separate transactions, and responsibility of the local hospital district in alternative "B". Member Akana will work with Mr. Malarky on the draft analysis.

2. Update on Draft Letter to the Washington State Investment Board (WSIB) - Mr. Malarky briefed the Board members on the status. WSIB has verbally indicated that Joe Dear intends to withdraw his request for advice when he returns from London. The WSIB acknowledged the comments by the Board and believe the risk of waiting for an additional consultant’s review outweighed the public interest. Member Akana commented that she understood that Mr. Malarky had provided the Board's response orally by a phone call to the WSIB without providing the WSIB the Board's three points of concerns in writing. Member Akana noted that the matter needed closure. Member Vaché emphasized the need to provide the WSIB with the record of the Special meeting minutes of May 26, 2004. The Board's instructions to Mr. Malarky is to draft a letter, for the Chair's signature, to the WSIB indicating that (1) it is the Board's understanding that the WSIB has verbally withdrawn its request for advice; and (2) the record of the Board's action at the May 26, 2004 Special Meeting are contained in the enclosed minutes being submitted with the letter. Motion made, seconded and passed to issue a letter to the WSIB.

D. Agency Policy Review Requests

1. Policy Review Request No. 04-6-0303-004, Department of Social & Health Services, regarding "Outside Employment" Policy - Motion was made, seconded and passed to approve the policy as written.

2. Policy Review Request No. 04-6-0303-005, Department of Social & Health Services, regarding "Relationships with Clients and Vendors" Policy - Mr. Malarky noted that both policies are comprehensive and well written. Motion was made, seconded and passed to approve the policy as written.

E. Staff Report – Mr. Malarky provided a copy of the filed CR 102 regarding contract approvals. Mr. Malarky noted that the hearing is set for Thursday, July 8, rather than the Board's regular meeting on July 9. Mr. Malarky indicated he would check with the Code Reviser's Office and change the hearing date to the Board's meeting date of July 9, if possible.

F. Executive or Closed Session (working lunch) - At 12:20 p.m., the Board moved into executive session to consider complaints against public officials. The Board, Board Counsel, and Board Staff attended the executive session. The Board then met in closed session to consider proposed stipulations and orders in several quasi-judicial matters before them. The Board and Board Counsel attended the closed session.

G. Public Comment/Board Member Comment – There were no public or board member comments.

H. Miscellaneous Matters/Adjournment. After reconvening the public session at 1:20 p.m., the Board accepted the proposed stipulation and order in EEB Case No. 03-110, Keith Gilbertson. The meeting adjourned at 1:25 p.m.